I registered purely to post this as it's driving me mad, hoping someone else might have noticed it or have a fix!
I open explorer, you get in the navigation pane:
Ok, so I want to remove Favourites because its a waste of space. I can right click in navigation pane or go 'view > navigation pane' to remove the favourites, doesn't make a difference which method.
Now all looks ok, favourites disappears, vertical spacing is fine. However, on re-opening an explorer window, libraries are suddenly squashed up next to this pc for some unknown reason. If I then put favourites back, close and re-open explorer, vertical spacing is fine again.
Basically, I can't remove favourites without it messing with the spacing, so I have to leave it in for now. I've run sfc.exe from cmd prompt but didn't come up with any errors. You'll notice I have used winaero to remove the folders from 'This PC' so maybe the problem lies there, not 100% sure though how to get explorer back to stock other than sfc.exe.
1) Explorer default
2) Favourites removed
3) Explorer re-opened
Has anyone else had this issue? Thanks.